1、Activity Report 20236Continuing to be astonished as a foundation for tomorrows successesWhat a pleasure it is,having achieved some historic results,to be able to celebrate once again the success of the houses creations and innovations,the fruit of hard work by our teams all over the world.We would l

2、ike to thank and congratulate them on their continued ability to surprise and amaze us,in keeping with the 2023 theme of Astonishment.Because,yes,this success could almost be seen as a challenge issued to the uncertain economic and geopolitical context,and to the high tensions and profound transform

3、ations that some regions are currently experiencing.And yet,is it really surprising to want to treat oneself,to seek out com-panion objects designed to last and gain a patina,to want to dream and escape the grave times for a few moments?Today,Herms is a refuge.In our house of creations and new ideas

4、,where quality is never compromised and the finest materials are always sought,we strive to remain true to our high standards as artisans and merchants.Being astonished by the worldIn 2023,we continued to expand and enhance our network of stores to receive our customers in the best possible surround

5、ings.Our stores in Bordeaux(France),Chicago(USA),Vienna(Austria)and Zhengzhou(China)reflect the aesthetics of local materials,colours and designs.It is hardly surprising,then,to find stained glass windows in Vienna,even if they were created by a designer more accustomed to working on silk scarves an

6、d tableware.Are you familiar with shades of bleu Encre and rouge Casaque?Whether its with the mascaras and eyeshadows of Le Regard or the womens and mens ready-to-wear collections,colour has been a major theme of our product launches.3With the new Louviers and la Sormonne workshops,and the extension

7、 of the textiles site at Pierre-Bnite,we are maintaining our ambition to establish strong regional roots and centres of excellence for our crafts.Beautiful things are made in beautiful places,and everything is even more beautiful when our buildings are E4C2 certified 1.Being anchored in a place also

8、 means strengthening relationships with our long-term partners and making an active contribution to the expansion of these sectors.To secure our supply chains and support the growth of all our mtiers,we have continued to invest in increasing capacity and have accelerated our vertical integration pro

9、jects,particularly in jewellery and shoes.Confident in the relevance of our business model,we are maintaining and strengthening our commitment to environmental and social responsibility.As the source of our exceptional materials,nature is at the heart of our business model,and preserving it plays a

10、central role in our CSR actions.Global warming and its impact on biodiversity,as well as the industrialisa-tion of raw materials,are areas of concern that we are addressing through our climate strategy,our concrete initiatives in terms of responsible supply chains,and our policies for preserving nat

11、ural resources.In order to establish scientific objectives for the preservation of biodiver-sity,the Group has committed the SBTN(Science Based Targets for Nature)initiative and is one of 120 companies worldwide to have done so.Ranked 4th among SBF120 companies for the proportion of women in its man

12、agement bodies,the houses social model is acclaimed.The cole Herms des savoir-faire,with its eight schools,is now able to award a certificate of professional qualification(CQP)in cutting and stitching in addition to the CAP vocational qualification in leatherwork.Trans-mission,training,development a

13、nd job creation more than 2,400 new employees were recruited in 2023 are the watchwords of our approach to corporate citizenship and the expression of our human values.For the third time,the house was awarded the Grand Prix Emploi France by the Humpact rating agency.1.The leather goods production si

14、tes of Louviers and la Sormonne,inaugurated in 2023,are today the first two industrial buildings in France to be E4C2 certified,a label which assesses environmental performance according to energy consumption and carbon emissions.They reflect the responsible construction standard developed by the ho

15、use,which is particularly demanding in terms of carbon footprint,air quality,local sourcing,biodiversity and environmental health,thus contributing to our objective of halving the carbon footprint per square metre built by 2030,compared to 2018.4Making a serious effort not to take ourselves too seri

16、ously 2023 was a busy year for events and opportunities to get together.In kee-ping with our tradition,we welcomed more than 52,000 visitors to the Herms in the Making exhibition in Lille(France),Chicago(United States)and Bangkok(Thailand),and more than 35,000 visitors to the immersive La Fabrique d

17、e la lgret exhibition in Taiwan,Los Angeles(United States),Hong Kong and Shanghai(China).We come to the end of 2023 happy and proud of the work we have done,and with a promise to continue astonishing ourselves in 2024.Axel Dumas,Executive ChairmanHenri-Louis Bauer,Representative of mile Herms SAS,Ex

18、ecutive Chairman5Inspired by a design from the 1970s,this cuff presents a pure aesthetic that combines leather and metal.PF_MUMBAI_WELCOME_CARPET-AOC.indd 37Since 1837,Herms has remained faithful to its artisan model and its humanist values.The freedom to create,the spirit of innovation,the constant

19、 search for beautiful materials,the transmission of savoir-faire of excellence,and the aesthetic of functionality all forge the singularity of Herms,a house of objects created to last.An independent,family-owned company which encompasses 16 mtiers,Herms is dedicated to keeping the majority of its pr

20、oduction in France through its 60 production and training sites and to developing its network of 294 stores in 45 countries.The group employs 22,000 people world-wide,including 13,700 in France,of which nearly 7,000 are craftspeople 1.Axel Dumas,a sixth-generation family member,has been Herms CEO si

21、nce 2013.Founded in 2008,the Fondation dentreprise Herms supports projects in the areas of artistic creation,education,training and the transmission of savoir-faire,biodiversity,and the preservation of the environment.1.As of 31st December 2023.PF_MUMBAI_WELCOME_CARPET-AOC.indd 3Made from vintage si

22、lk,the Is This a Love Story?scarf is a witty and colourful behind-the-scenes story set in a stable.EXECUTIVE CHAIRMENAXEL DUMAS Executive ChairmanMILE HERMS SASExecutive Chairmanrepresented byHENRI-LOUIS BAUER EXECUTIVE COMMITTEEAXEL DUMAS Executive ChairmanFLORIAN CRAEN Executive Vice President Sal

23、es and DistributionCHARLOTTE DAVID Executive Vice President CommunicationPIERRE-ALEXIS DUMAS Artistic Executive Vice PresidentOLIVIER FOURNIER Executive Vice PresidentCorporate Developmentand Social AffairsCATHERINE FULCONIS Executive Vice President Leather Goods-Saddleryand petit hWILFRIED GUERRAND

24、 Executive Vice PresidenMtiers,IT Systems and Datat RIC DU HALGOUTExecutive Vice PresidentFinanceSHARON MACBEATH Group Human Resources DirectorGUILLAUME DE SEYNES Executive Vice President Manufacturing Divisionand Equity InvestmentsAGNS DE VILLERS Chairwoman andExecutive Vice PresidentHerms Perfume

25、and Beauty9MANAGEMENT BODIES1.Employee representative.SUPERVISORY BOARDRIC DE SEYNES ChairmanMONIQUE COHEN Vice ChairwomanDOMINIQUE SENEQUIER Vice ChairwomanDOROTHE ALTMAYER PRESCIENCE ASSOH 1 CHARLES-RIC BAUER ESTELLE BRACHLIANOFF MATTHIEU DUMAS BLAISE GUERRAND JULIE GUERRAND OLYMPIA GUERRAND RENAU

26、D MOMMJA ANNE-LISE MUHLMEYER 1ALEXANDRE VIROSAUDIT AND RISKCOMMITTEEMONIQUE COHEN ChairwomanCHARLES-RIC BAUER ESTELLE BRACHLIANOFF RENAUD MOMMJA ALEXANDRE VIROSCAG-CSR COMMITTEEDOMINIQUE SENEQUIER ChairwomanESTELLE BRACHLIANOFFMATTHIEU DUMASACTIVE PARTNERMILE HERMS SASActive Partner,represented by i

27、ts Management Board:HENRI-LOUIS BAUER Executive ChairmanFRDERIC DUMAS Vice ChairmanPASCALE MUSSARD Vice ChairwomanSANDRINE BREKKE CAPUCINE BRUETALICE CHARBINDOUARD GUERRAND LAURENT E.MOMMJA JEAN-BAPTISTE PUECH GUILLAUME DE SEYNES10Un Jardin Cythre:this fragrance,a dry,blond garden of golden grasses,

28、olive wood and fresh pistachio,was born from memories of a trip to Greece.It is the seventh fragrance in the Jardin collection.12Key consolidated data in M 2023 2022 2021REVENUE 13,427 11,602 8,982Growth at current rates vs y-1 15.7%29.2%40.6%Growth at constant rates vs y-1 1 20.6%23.4%41.8%RECURRIN

29、G OPERATING INCOME 2 5,650 4,697 3,530as a%of revenue 42.1%40.5%39.3%OPERATING INCOME 5,650 4,697 3,530as a%of revenue 42.1%40.5%39.3%NET INCOME ATTRIBUABLE TO OWNERS 4,311 3,367 2,445OF THE PARENT as a%of revenue 32.1%29.0%27.2%OPERATING CASH FLOWS 5,123 4,111 3,060OPERATING INVESTMENT 859 518 532A

30、DJUSTED OPERATING CASH FLOW 3 3,192 3,405 2,661SHAREHOLDERS EQUITY 15,201 12,440 9,400RESTATED NET CASH 4 11,164 9,742 7,0701.Growth at constant exchange rates is calculated by applying the average exchange rates of the previous period to the current periods revenue,for each currency.2.Recurring ope

31、rating income is one of the main performance indicators monitored by the groups General Management.It corresponds to the operating income excluding non-recurring items having a significant impact likely to affect the understanding of the groups economic performance.3.Adjusted operating cash flow cor

32、responds to the sum of operating cash flows and change in working capital requirement,less operating investments and repayment of lease liabilities,as per IFRS 16 cash flow statement(consolidated statement of cash flows).4.The restated net cash position corresponds to net cash plus cash investments

33、that do not meet the IFRS 16 criteria for cash equivalents due in particular to their original maturity of more than three months,less borrowings and financial liabilities.13CONSOLIDATED REVENUE IN M RECURRING OPERATING INCOME AS A PERCENTAGE OF REVENUE20142015201620172018201920202021202220232014201

34、520162017201820192020202120222023 31.5 31.8 32.6 34.6 34.8 34.0 31.0 39.3 40.5 42.1 4,119 4,841 5,202 5,549 5,966 6,883 6,389 8,982 11,602 13,42714Revenue by mtier and change 2023/2022 2023 Revenue in M 2022 Revenue in M Evolution at constantexchange ratesLEATHER GOODS AND SADDLERY 5,547 4,963 16.7%

35、CLOTHING AND ACCESSORIES 3,879 3,152 28.2%SILK AND TEXTILES 932 842 15.6%OTHERS HERMS MTIERS 1,653 1,371 25.8%PERFUMES AND BEAUTY 492 448 11.7%WATCHES 611 519 23.2%OTHER PRODUCTS 313 306 5.2%TOTAL 13,427 11,602 20.6%REVENUE BY MTIER Leather Goods and Saddlery 41%Clothing and Accessories 29%Other Her

36、ms mtiers 12%Silk and Textiles 7%Perfumes and Beauty 4%Watches 5%Other products 2%615REVENUE BY REGION Asia-Pacific(excluding Japan)47%Americas 19%Europe(excluding France)13%Japan 10%France 9%Others 2%Revenue by regionand change 2023/2022 2023Revenue in M 2022Revenue in M Evolution at constantexchan

37、ge rates EUROPE 3,093 2,600 20.0%France 1,274 1,064 19.8%Europe(excluding France)1,818 1,536 20.2%ASIA-PACIFIC 7,533 6,657 20.2%Japan 1,260 1,101 25.7%Asia-Pacific(excluding Japan)6,273 5,556 19.1%AMERICAS 2,502 2,138 20.5%OTHERS 299 207 44.0%TOTAL 13,427 11,602 20.6%16Key stock market data 2023 202

38、2 2021NUMBER OF SHARES as at 31 Decembre 105,569,412 105,569,412 105,569,412AVERAGE NUMBER OF SHARES excluding treasury shares 104,648,079 104,564,729 104,623,330MARKET CAPITALISATION as at 31 Decembre 202.57 bn 152.55 bn 162.15 bnNET EARNINGS PER SHARE excluding treasury shares 41.19 32.20 23.37DIV

39、IDEND PER SHARE 25.00 1 13.00 8.00AVERAGE DAILY VOLUME Euronext 57,338 77,527 55,25712-MONTH HIGH SHARE PRICE 2,063.50 1,585.50 1,678.0012-MONTH LOW SHARE PRICE 1,450.00 957.60 839.4012-MONTH AVERAGE SHARE PRICE 1,846.59 1,264.22 1,190.97SHARE PRICE AS AT 31 DECEMBER 1,918.80 1,445.00 1,536.001.Corr

40、esponds to an ordinary dividend of 15.00 and an exceptional dividend of 10.00.Subject to approval by the Ordinary General Meeting of 30th April 2024.An interim dividend of 3.50 was paid on 15th February 2024.17SHAREHOLDING STRUCTUREAT 31 DECEMBER 2023 Herms family-owned group 66.7%Public 32.5%Treasu

41、ry stock 0.8%HERMS SHARE PRICE HISTORY IN 2023(in euros)2 2002 0001 8001 6001 400jan.feb.marchapriljunemayjulyaug.sept.oct.nov.dec.18 17,595 16,600 15,417 14,284 13,483 12,834 12,244 22,037 19,686 11,718 11,037201420152016201720182019202020212022202320132 in 10 years10,96910,3839,5528,8468,3197,8817

42、,4617,0516,63113,72312,3606,6266,2175,8955,4385,1644,9534,7834,6674,4068,3407,326EVOLUTION OF THE GROUPS TOTAL WORKFORCE OVER THE LAST TEN YEARS France/Rest of the worldWORKFORCE BREAKDOWN BY SECTOR Production 47%Sales 35%Support functions 18%WORKFORCE BREAKDOWN BY REGION France 62%Asia-Pacific(excl

43、uding Japan)16%Europe(excluding France)11%Americas 7%Japan 4%FEMALE-MALE RATIO Female 68%Male 32%Naples(United States):the inauguration of the countrys 40th store,the 5th in Florida,in the Waterside Shops mall.RESPONSIBLEEMPLOYER2,400jobs created in 2023VERTICAL INTEGRATION55%manufactured in its in

44、house and exclusive workshopsCLIMATESCOPES 1&2(SBTI)-30%emissions reduction in absolute value between 2022 and 2023TRANSPARENCY AWARDS1#CAC Large 60DIVERSITY&INCLUSION6.85%direct employment rateof people with disabilitiesLONG-TERM RELATIONSHIPS19 YEARSaverage age of supplier relationships(Top 50)BIO

45、DIVERSITY SBTNscientific approachfor nature undertakenCOMMITTED TO COMMUNITIES400local actions and partnerships in 2023GENDEREQUALITY60%women managersin the groupLOCAL ANCHORING74%of objects are madein FranceWATER CONSUMPTION-62%in industrial waterintensity over 10 yearsSUSTAINABILITY 200,000repairs

46、in workshops TURNOVER4.78%group turnoverrateLOCALSUPPLIERS66%of purchases come from France(Top 50)ENERGY TRANSITION70%renewableenergyCERTIFICATION100%of the Groups tanneries are Leather Working Group certified 20To support its growth,Herms recruited 2,400 employees in 2023.The company now employs ov

47、er 22,000 people worldwide.Le Saut Herms in Paris(France):the 13th edition of this international CSI 5*competition also offered fun activities for sharing a passion for horses with visitors of all ages.6The Aron bag invites a new gesture with its outside pocket,snap hook and rounded,equestrian-inspi

48、red shape.Inauguration of the Maroquinerie de la Sormonne(Ardennes),the second workshop in the Ardennes leatherworking hub,which will ultimately house 260 artisans trained at the cole Herms des savoir-faire.Vienna(Austria):in an eighteenth-century building,the store is adorned with colours,materials

49、 and geometric motifs inspired by the Vienna Secession.Seoul(South Korea):the metamorphosis of Herms very first store in Korea,first opened in 1997 in the Shilla Hotel.Elongated,multiplied and reappropriated,the Chane dancre reveals a new repertoire of astonishing shapes.Extension of the long-establ

50、ished textiles site at Pierre-Bnite(Rhne)with a new printing line and the prospect of more than 100 new jobs created by 2026.6Le Regard Herms,the fifth chapter of Beauty,celebrates colour,light and their mysterious harmonies.It offers Herms make-up in its entirety.Herms in the Making:an opportunity

51、to meet the artisans and a celebration of the houses know-how in Lille(France),Chicago(USA)and Bangkok(Thailand).Inauguration of the Maroquinerie de Louviers(Eure),a technical and architectural achievement for the first positive-energy industrial building to be awarded the E4C2 label,which assesses

52、environmental performance according to energy consumption and carbon emissions.IllustrationsGeoffroy Pithon An Herms publication Herms,Paris 2024 Herms InternationalPartnership limited by shareswith share capital of 53,840,400.12 eurosCommmercial and Companies register of Paris no.572 076 396 Headquarters:24,rue du Faubourg-Saint-Honor75008 Paris+33(0)1 40 17 44 37